Latest news about Bitcoin and all cryptocurrencies. Your daily crypto news habit.
Tether Holdings Limited, the issuer of the popular stablecoin, USDT, has achieved exceptional financial results in the first quarter of 2024, reporting a record net profit of $4.52 billion. According to BDO, a leading independent accounting firm, this milestone is accompanied by an unprecedented ownership percentage of treasury bills.
Full Details of Tether Q1 Earnings
Likewise, Tether’s net equity now stands at an impressive $11.37 billion, underscoring its robust financial position and market presence. Meanwhile, out of the $4.52 billion, $1 billion stems from net operating profits from US Treasury holdings. The remaining $3.52 billion comes from mark-to-mark market gains in Bitcoin and Gold.Â
Also, the firm’s direct and indirect ownership of United States treasuries now exceeds $90 billion, and over $12.5 billion in USDT was issued in the first quarter. Tether also confirmed that its tokens have 90% backing by cash and cash equivalent.
Notably, this achievement reflects Tether’s commitment to diversifying its investment portfolio while prioritizing stability and growth.Â
Tether Dominating the Stablecoin Market
Tether, originally launched in 2014, operates on blockchain networks like Ethereum (ETH) and Tron, providing users with a digital token pegged to the value of fiat currencies like the US Dollar. This pegging mechanism has contributed to widespread adoption across various crypto exchanges and platforms.
Recall that the company’s circulating supply inched closer to 100 billion tokens in March. This surge reflects the growing demand for stablecoins in the crypto market. Despite facing criticism and regulatory scrutiny over transparency concerns, Tether solidifies its position as a key player in the crypto ecosystem.
Tether Includes Bitcoin as Part of its Investment Strategy
The renowned stablecoin issuer first revealed its Bitcoin (BTC) holding in May 2023 when it shared its attestation report for Q1 2023. At the time, Tether had pledged 15% of its quarterly profit to acquire BTC as part of its plans to diversify its reserve from US government debt.
Last month, Tether acquired an additional 8,888 BTC, making it the seventh-largest holder of the leading cryptocurrency. With the new addition, Tether had crossed the $5 billion mark as its wallet holds over 75,000 BTC. Meanwhile, this new strategy has reaped tremendous results for the firm, thanks to the bullish run of the digital assets, partly influenced by several spot Bitcoin Exchange-Traded Fund (ETF) approvals and the Bitcoin halving.
Tether’s growing Bitcoin stash shows its increased institutional interest in the asset. In addition to its BTC investments, the firm is actively involved in Bitcoin mining operations. It has highlighted a new Bitcoin mining software that its developers are getting ready to release.
The post Tether Record Net Profit of $4.52B In Q1 2024 appeared first on Latest News and Insights on Blockchain, Cryptocurrency, and Investing.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.